Asset Management. CS (Lux) Prima Family Presentation. Review Q CS (Lux) Prima Multi-Strategy Fund CS (Lux) Prima Growth Fund.

Transcription

1 CS (Lux) Prima Family Presentation Review Q CS (Lux) Prima Multi-Strategy Fund CS (Lux) Prima Growth Fund December 2014

2 Merger Deal-Break: AbbVie vs Shire Source: Bloomberg; data as of Nov 2014 Historical performance indications and financial market scenarios are not reliable indicators of current or future performance. 2/19

3 Observations : Abenomics is Working..or Not? Nikkei in JPY Nikkei in USD Source: Bloomberg Historical performance indications and financial market scenarios are not reliable indicators of current or future performance. 3/19

4 10-Year Gov. Bond Yields: US, Italy, Spain and Germany 10-Year Gov. Bond Yields: US, Italy, Spain and Germany % Spain Italy United States Germany Cost of Bank Credit % Interest rate on short term loans up to EUR 1m 7.0 to non-financial corprorates less ECB repo rate Jan 03 Jan 05 Jan 07 Jan 09 Jan 11 Jan 13 Greece Portugal Spain Euro area Last data point: Source: Bloomberg, Credit Suisse / IDC 4/19

5 29-Aug-14 5-Sep Sep Sep Sep-14 3-Oct Oct Oct Oct Oct-14 7-Nov-14 CS (Lux) Prima Multi-Strategy Fund and Prima Growth Fund Performance Evaluation and Comparison Product performance in Sept/Oct MSCI World Prima Multi Strategy Prima Growth Prima Multi Strategy Prima Growth Peer Averages UCITS Alternative Index UCITS Alternative FoF Index MSCI World Volatility 2.86% 4.11% 2.95% 2.62% 2.74% 13.47% Max Drawdown -3.27% -4.07% -5.45% -4.28% -6.00% % 2014 YTD 2.10% 0.73% 0.50% 1.50% 0.23% 4.72% L3 1.29% 1.11% 0.19% 0.37% -0.15% -0.53% L6 2.10% 2.22% 0.69% 0.77% 0.01% 1.42% L % 1.73% 1.39% 1.90% 0.68% 6.82% L % 4.32% 1.72% 3.26% 1.33% 18.18% L % 10.49% 5.39% 6.21% 4.98% 32.23% L % 13.22% 6.76% 6.85% 3.07% 46.84% since inception or Aug 2010 annualized 2.56% 3.61% 0.91% 1.00% -0.28% 9.78% Sharpe Ratio (0%) Historical returns or financial market scenarios are not a guarantee for current or future Performance. Performance indications do not consider commissions levied at subscription and/or redemption. Source: Bloomberg As of /19

6 Manager trading example 2014 Themes: Changing Forward Expectations GB 1y1y vs. US 1y1y 6/19

7 What has worked, and what hasn t What has worked Our manager selection was strong with the portfolio outperforming the indices in almost every strategy. Tactical Trading strategies were particularly strong Protection in down markets Actively trading the portfolio: What has not worked The rotation within equity markets in March and April was hurting one of our main bets in the portfolio: stock picking Contribution outside of Tactical and Fundamental strategies was positive but somewhat muted Added to LSE after the rotation Adding to funds hit by the sell off in October We have added new managers to the platform, some through seeding deals which broadened the universe and reduces costs We have further diversified the investor base We have partnered with managed account platforms in order to bring down fees and broaden the investment universe 7/19

8 CS (Lux) Prima Multi-Strategy Fund Current Portfolio Allocation Strategy Name Strategy Allocation Fund Name Market Value Fund Allocation Corporate 12.0% Oyster Global Convertibles Fund 38,180, % Blackrock Europe Credit Strategies 52,373, % CTA 4.4% DB Platinum IV dbx Systematic Alpha Index Fund 33,221, % Equity Long-Short 56.1% GAM Star EM Alpha UCITS 43,506, % GAM Star Euro Alpha UCITS 53,303, % Exane Archimedes Fund 44,080, % Veritas China 28,780, % Alken Absolute Return Europe Fund 52,079, % MS Alkeon UCITS Fund 27,365, % MS Ascend L/S Fund 25,793, % Marshall Wace Developed Europe 38,902, % Gartmore Sicav UK Absolute Return Fund 53,518, % APS UCITS (Asia) 16,105, % CCI Healthcare Fund 38,651, % Event Driven 13.1% MS PSAM Global Event Ucits Fund 50,019, % York Event-Driven Ucits Fund 48,645, % Macro 12.0% Diversified Alpha Plus Fund (UCITS) 44,222, % GAM Star Global Rates FX 46,143, % Cash and Equivalents 2.3% Cash and Equivalents 17,094, % Total AUM 752m EUR This is an indicative asset allocation, which may change over time; all numbers are in EUR. Strategies have been reclassified effective January 1, 2014 Source: Credit Suisse As of /19

9 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Cumulative returns CS (Lux) Prima Multi-Strategy Fund and Prima Growth Fund CS (Lux) Prima Multi-Strategy Fund Performance Evaluation and Statistics Cumulative Net returns (Class FB EUR) CS (Lux) Prima Multi-Strategy Fund UCITS Alternative Index Global UCITS Alternative Index Fund of Funds Year January Febuary March April May June July August Septem ber October Novem ber Decem ber YTD % 0.95% 0.62% -0.55% 0.74% 2.14% % 0.74% -0.42% 0.84% -0.56% -0.79% 0.85% -1.87% -0.62% 0.13% -0.37% -0.07% -2.11% % 1.72% 0.43% -0.13% -1.15% -0.19% 0.67% 0.29% -0.20% -0.32% 0.23% 0.88% 2.92% % 0.12% 0.99% 0.33% 1.22% -1.65% 1.52% -0.99% 1.05% 0.97% 0.90% 0.56% 6.35% % 1.24% -0.79% -1.47% 0.83% 0.20% 0.25% 0.36% 0.35% -0.59% 1.51% 2.10% The Fund s inception date is The 1 st NAV was published on July 28. Due to the weekly NAV cycle, for the purposes of this presentation, the monthly performance period ends on the last Wednesday of each month. Historical returns or financial market scenarios are not a guarantee for current or future performance. Performance indications do not consider commissions levied at subscription and/or redemption. Source: Bloomberg As of /19

10 Equity Long Short Event Driven Macro CTA Corporate Equity Long Short Event Driven Macro CTA Corporate CS (Lux) Prima Multi-Strategy Fund and Prima Growth Fund CS (Lux) Prima Multi-Strategy Fund Strategy Performance and Contribution Strategy Performance 2014 Strategy Contribution % 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Past performance is no indication for future returns. Please see last page for important information. Strategies have been reclassified effective January 1, 2014 Sources: Credit Suisse, Bloomberg As of /19

11 CS Prima Multi Strategy Tactical trades October 2014 Tactical trades in October Addition 10m EUR Alken Europe Addition 10m EUR York UCITS Addition of 7.5m EUR Oyster Convertible UCITS (contribution of +3bps through the additional allocation) Funded by cash and redemption of Loomis Sayles (performance since redemption +0.1%) These trades alone added 23bps to product performance until the end of November Alken York All performance calculated until the end of November 11/19

12 CS (Lux) Prima Growth Fund Current Portfolio Allocation Strategy Name Strategy Allocation Fund Name Market Value Fund Allocation Macro 7.9% GAM Star Global Rates FX 29,402, % CTA 5.5% DB Platinum IV dbx Systematic Alpha Index Fund 20,321, % Equity Long-Short 64.5% MS Alkeon UCITS Fund 29,517, % DB Platinum Ivory Optimal 25,562, % Marshall Wace Europe 32,338, % CCI Healthcare 36,519, % Schroder GAIA Egerton European Equity Fund 30,053, % CS EQ Small Cap Alpha UCITS 23,866, % DNB TMT Absolute Return UCITS 23,932, % APS UCITS (Asia) 17,294, % LBN China Opp Ltd 19,792, % Event Driven 15.3% York Event-Driven Ucits Fund 31,177, % HI Numen Credit Fund 25,444, % Multi-Strategy 5.1% OZ Europe MS UCITS 19,012, % Cash & Other 1.6% Cash & Other 5,915, % Total AUM 370m EUR This is an indicative asset allocation, which may change over time; all numbers are in EUR. Strategies have been reclassified effective January 1, 2014 Source: Credit Suisse As of /19

13 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Cumulative returns CS (Lux) Prima Multi-Strategy Fund and Prima Growth Fund CS (Lux) Prima Growth Fund Performance Evaluation and Comparison Cumulative Net Returns (Class FB EUR) UCITS Alternative Index Global UCITS Alternative Index Fund of Funds CS PRIMA Growth Year January Febuary March April May June July August September October November December YTD % -0.32% -1.77% % 1.80% 0.39% -0.17% -1.69% -0.87% 0.84% 0.45% 0.39% 0.01% 0.40% 0.99% 3.83% % 0.17% 1.10% 0.24% 1.55% -1.99% 2.05% -1.34% 1.42% 1.21% 1.25% 0.99% 8.62% % 1.81% -1.43% -2.68% 0.87% 0.27% 0.33% 0.49% 0.12% -0.93% 1.94% 0.73% The Fund s inception date is The 1 st NAV was published on Due to the weekly NAV cycle, for the purposes of this presentation, the monthly performance period ends on the last Wednesday of each month. Historical returns or financial market scenarios are not a guarantee for current or future performance. Performance indications do not consider commissions levied at subscription and/or redemption. Source: Bloomberg As of /19

14 Equity Long-Short Event Driven Macro CTA Equity Long-Short Event Driven Macro CTA CS (Lux) Prima Multi-Strategy Fund and Prima Growth Fund CS (Lux) Prima Growth Fund Portfolio Performance Analysis Strategy Performance 2014 Strategy Contribution % 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% Past performance is no indication for future returns. Strategies have been reclassified effective January 1, 2014 Source: Bloomberg As of /19

15 CS Prima Growth Tactical trades October 2014 Tactical trades in October Addition 10m EUR Alkeon Growth Addition 10m EUR York UCITS Funded by cash and total redemption of Loomis Sayles These trades alone added 15bps to product performance until the end of November Alkeon York All performance calculated until the end of November 15/19

16 Addressing fees and developing the fund universe Size Allows Us To Reduce Fees & Expand The Investment Universe CSAM Is Largest Allocator To Alternative UCITS Funds CSAM Reduces Fees For Investors By Engaging Funds & Platforms All-in fees management + platform fees combined Our footprint enables us to launch alternative UCITS managers broadening the investment universe & reducing fees for investors Our longstanding relationship with funds and platforms allows us to further reduce fees while increasing flexibility & transparency The AUM figures are provided by Alix Capital as of 31 st of May 2014 Fees are averages across all alternative UCITS Funds invested by CSAM as of May 31 st 2014; retail fees relate to fees of the underlying funds retail share classes, institutional fees relate to fees of the underlying funds institutional classes Source: Credit Suisse, Alix Capital As of /19

17 Outlook Some key themes for 2015 Fed hiking rates European and Japanese monetary easing Lower oil prices and its impact European elections/politics Emerging Markets Soucres: Bloomberg, Credit Suisse, Balyasny AM 17/19

18 Investment Risks of UCITS funds Potential underperformance of UCITS Fund of Hedge Funds in comparison to traditional Fund of Hedge Funds due to higher liquidity and regulatory restrictions. Relatively high fees of the underlying UCITS funds for their expected rate of return. However, the average fees of the UCITS funds in CS (Lux) PRIMA funds are lower (average Management Fee of 1.3%, average Performance Fee of 15%) than their respective Cayman vehicles. Short track record of most of the Hedge Funds in a UCITS format. We do not know yet the behavior of UCITS III funds in a liquidity crisis problematic in a liquidity crisis are UCITS funds in less liquid strategies. Expected return is no is no projection, prediction or guarantee for future performance, and there is no certainty that the expected return will be reached. 18/19

19 Disclaimer This document was produced by Credit Suisse AG and/or its affiliates (hereafter CS ) with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are not audited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U.S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. Historical performance indications and financial market scenarios are no guarantee for current or future performance. Performance indications do not consider commissions levied at subscription and/or redemption. Furthermore, no guarantee can be given that the performance of the benchmark will be reached or outperformed. Potential investors should be aware of specific risks relating to investments in emerging markets, which are speculative and considerably more volatile than investments in established markets. Risks include but are not necessarily limited to: political risks, economic risks, credit risks, currency risks and market risks. The investment funds mentioned in this publication have been established under Luxembourg law as undertakings for collective investment in transferable securities (UCITS) subject to EU Directive 2009/65/EC, as amended. Subscriptions are only valid on the basis of the current sales prospectus, key investor information document (KIID) and the most recent annual report (or half-yearly report, if this is more recent). These and the funds management regulations and/or articles may be obtained free of charge, in English, from Credit Suisse Fund Services (Luxembourg) S.A., P.O. Box 369, L-2013 Luxembourg. Copyright 2014 Credit Suisse Group AG and/or its affiliates. All rights reserved. 19/19